Dear Trader…
Markets remained volatile on the monthly expiry day and closed marginally lower, in continuation of the prevailing corrective phase. After the flat start, the Nifty future index oscillated in a narrow range and finally settled at 17,511.90 levels; down by 0.31%. Mostly sectoral packs traded in sync with the benchmark and ended lower wherein energy, realty and consumption were among the top losers. Meanwhile, the broader indices showed resilience and ended almost unchanged.
Though we may see some respite after the recent fall, the tone is likely to remain negative citing subdued cues. Apart from banking and financials, other sectors are also facing the heat now. Considering the scenario, participants should continue with the “sell on rise” approach until we see some signs of reversal.
Nifty futures opened at 17660.00 points against the previous close of 17662.05 and opened at a low of 17556.00 points. Nifty Future closed with an average movement of 172.00 points and a decline of around 39.05 points and 17623.00 points...!!
On the NSE, the midcap 100 index will decline 0.15% and smallcap 100 index is closing decline 0.08%. Speaking of various sectoral indices, the NSE saw gains in PSU Bank, Metal, FMCG, Bank and PVT Bank stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, April gold opened at Rs.55954, fell from a high of Rs.56010 points to a low of Rs.55757 with a decline of 298 points, a trend of around Rs.55785 and March Silver opened at Rs.65511, fell from a high of Rs.65511 points to a low of Rs.64902, with a decline of 399 points, a trend of around Rs.65039.
Meanwhile, Investors await an official quarterly reading of India's GDP for more clarity on the state of the economy and the future course of interest rates. After a negative start, weakness persisted for the whole trading day, as traders got concerned after the State Bank of India (SBI) projected a GDP growth of 4.6% for the December quarter, citing that as many as 30 high frequency indicators are not as robust as they were in the previous quarters.
Besides, India Ratings projected a dip in FY24 growth to 5.9%, lower than Reserve Bank's 6.4%. Losses got intensified during the second half of the trading session, amid weakness across global markets. Russia's nuclear rhetoric and the threat of world war remained on the minds of investors. Domestic sentiments remained negative, amid a private report stating that the Reserve Bank of India will increase its main interest rate by 25 basis points to 6.75% in April and then pause until the end of 2023.
Traders took a note of another private report stating that the Indian rupee's expected volatility against the dollar over the next one month hit its lowest level in almost seven months on Tuesday, February 21, tracking the currency's recent narrow trading range and on expectations of the central bank's continued support.
Technically, the important key resistances are placed in Nifty future are at 17707 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 17770 – 17808 levels. Immediate support is placed at 17590 – 17537 levels.
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